https://www.taxtmi.com/acts?id=5509 Profits of an enterprise are taxable only in the State of residence unless the enterprise carries on business in the other State through a permanent establishment, in which case only profits attributable to that permanent establishment, related sales of similar goods, or similar business activities may be taxed there. Attribution follows the separate enterprise principle and arm's length dealings; deductions for expenses attributable to the permanent establishment are allowed subject to domestic law. The same attribution method should be used year to year unless there are good reasons to change, and mere purchases do not give rise to attributed profits. en-us Sat, 19 Jan 2008 22:45:54 +0530 Tue, 03 Dec 2024 15:13:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/acts?id=5509 Profits of an enterprise are taxable only in the State of residence unless the enterprise carries on business in the other State through a permanent establishment, in which case only profits attributable to that permanent establishment, related sales of similar goods, or similar business activities may be taxed there. Attribution follows the separate enterprise principle and arm's length dealings; deductions for expenses attributable to the permanent establishment are allowed subject to domestic law. The same attribution method should be used year to year unless there are good reasons to change, and mere purchases do not give rise to attributed profits. Act-Rules DTAA Sat, 19 Jan 2008 22:45:54 +0530 https://www.taxtmi.com/acts?id=5509